As a business lender,you would prefer that the borrower have stable or growing cash flows resulting from which part of the statement of cash flows?

Question

Quizplus · Accepted Answer

As a business lender, the stability or growth of cash flows is important to ensure the borrower can meet their debt obligations. Therefore, the operating cash flows section of the statement of cash flows is the most relevant as it shows the cash generated from the borrower's core business operations. Financing cash flows and cash flows from investment may also be important to consider, but they are not as directly tied to the borrower's ability to repay their debt. Dividends and Common Stock are not relevant to the stability or growth of cash flows.

As a Business Lender,you Would Prefer That the Borrower Have